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trade between industrialised countries that are relatively similar in their factor endowments?

Homework Assignment

Essay question;- Is it possible to explain why about one half of the worlds’ trade consists of trade between industrialised countries that are relatively similar in their factor endowments? References: David Greenaway – Current Issues in International Trade, Chapter – Intra-Industry Trade Krugman and Obstfeld Chapter 6; Either, Chapter in International Economics Grubel; International Economics; Markusen and Obstfeld; Chapter 11 Husted and Melvin Chapter 5

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